What would Joe's Underinsured Motorist (UM) policy pay for medical bills of $42,000 after an accident with a hit and run driver?

When determining how much Joe's Underinsured Motorist (UM) policy would cover for his medical bills of $42,000 after an accident involving a hit-and-run driver, it is essential to understand the mechanics of UM coverage. Underinsured Motorist coverage is designed to protect policyholders when the at-fault driver does not have sufficient insurance to cover damages.

In Florida, the law mandates that all auto insurance policies include a minimum amount of UM coverage unless the policyholder expressly rejects it. If the hit-and-run driver is not identified or has no insurance, Joe's UM policy can still provide coverage for his medical expenses.

Assuming Joe has Underinsured Motorist coverage limits that exceed the dollar amount he is requesting for benefits, the UM policy would cover the difference between what is owed and the minimum required by the hit-and-run driver if any coverage is applied.

Given the scenario, if the hit-and-run driver does not have insurance, Joe's UM policy would be utilized fully to cover his medical expenses. However, if the maximum limit of Joe's UM coverage were set at $25,000, he would only receive $25,000 toward his $42,000 medical bills, leaving him to pay the balance. If the limit is higher